Erudio student loan debt - possible CCJ

Loandebt

Hi,

I'm posting about my wife, who has had a sheriff show up at the door saying that she has to engage with Shoosmiths and pay off her student debt or she would have to go to court and have a CCJ put on her credit file.

My wife doesn't work as we have 3 disabled children and she is a carer for them. They all receive DLA and my wife has carers allowance. Also she is epileptic and freaking out about an income and expenditure form. I pay most bills and she feels like she's going to have to get into debt to pay this off.

Does anyone have any advice? Help!

sourcrates

Hi,

You don’t normally go to court, and a CCJ is not just put on your credit file, there is a legal process to follow, does she owe this money ?

Is it an old style student loan ?
Could it be statute barred ?

She can always come to an arrangement, or if it goes to court, she can agree an affordable monthly payment, nothing to fret about, it’s a simple process to follow.

You only ever pay what’s affordable backed up by a copy of your budget.

Loandebt

She took student loans, but unfortunately she is unable to work because of the needs of our kids. I work Nightshift so I can be there during the day for appointments, but even with the benefits she receives for caring she is well under the threshold for starting to pay this. Erudio were told this and given details of all of this but they appear to have handed it off to a debt collection agency to try and get something out of my wife. It's really frustrating and it's causing us a lot of anxiety.

Suseka97

You use the term 'sheriff' but I rather think this was a debt collector working on behalf of Shoosmith, who are a debt collection agency. I make that distinction because a debt collector does not have the same right of enforcement as a sheriff. And to be able to use the services of a sheriff the matter would already have to have gone to court and a judgement (CCJ) would already exist.

Sourcrates has already asked some useful questions that will help others to assist here - now noting you say that she does have an outstanding student loan, how old is it? If older than 6 years, then it could possibly be statute barred and would mean she cannot be pursued for payment of it (but there is a process to follow here).

If it's not statute barred -then your best course of action is to write to the debt collectors (do not call them) and set out your wife's financial position. The fact she has no income other than DLA does sound as if she is not in a financial position to come to any sort of arrangement to pay. You do need to complete and income and expenditure statement - but you don't have to use their forms. Just put together a simply incomings and outgoings statement that clearly shows what is left once priority bills and general housekeeping costs are paid for (which is likely to be nothing or very minimal - yes).

That's your starting point and then come back for more advice depending on what happens next. Oh and do add that all communications are to be dealt with in writing and ask that no-one attends your property. If they do, then simply tell them to go away.

If at any time you receive a 'letter before action' - which I do think is unlikely here, that would be a prelude to court action and you are still able to make a defence of hardship (if that is the case). If it did eventually end up 'in court' as such - again your wife wouldn't be asked to pay any more than is affordable based on her financial circumstances.

I know this is all worrying, but you are a long way off from that.

CakeCrusader

Shoosmiths are solicitors, they aren't debt collectors. What does their letter say, exactly? Does it have 'letter before action' printed on it anywhere? Are you in Scotland by any chance? How old is the loan, when did your wife last make a payment, aknowledge it in writing (send them a letter saying 'yes, it's mine, I can't pay you now' or something along these lines, and when was the last time she deferred?

Suseka97

Ah okay, I stand corrected. I see there is a Shoosmiths LLP law firm and they obviously have a debt collection department.

Anyway, the OP speaks about a visit from a sheriff and the need to fill out an income and expenditure form - so I'm guessing a debt collector attended the property. Either way - answers to the questions raised will help resolve the situation.